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Queen’s Park is introducing debit cards for disabled people on welfare who don’t have bank accounts and are often forced to rely on cheque-cashing outlets to get their money, the Star has learned.

More than 46,000 individuals on the Ontario Disability Support Program (ODSP) who still get paper cheques will benefit from the measure, provincial officials say. This includes almost 13,000 in Toronto.

“The reloadable payment card is one way we are moving social assistance into the 21st century and providing better service to our most vulnerable clients,” said Social Services Minister Helena Jaczek. “This is a safer option for clients who don’t have bank accounts.”

The card, being issued by the Royal Bank, is modeled on a similar program introduced three years ago in Toronto for people on Ontario Works, a welfare program for people without disabilities administered by municipalities.

Under the provincial ODSP plan, funds will be downloaded monthly to the cards of eligible clients, who will be able to withdraw the money through any ATM or use the card for in-store or online purchases.

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To ensure client privacy, the cards will not be monitored and will not identify the cardholder as someone receiving social assistance, government officials said.

First announced in March 2015, the ODSP debit card is being introduced on a trial basis with volunteers who will test the card to see what kind of support is needed to ensure clients aren’t hit with unnecessary fees by using out-of-network ATM fees. (Clients will get four free withdrawals per month at Royal Bank ATMs. Subsequent withdrawals will cost $2 each.)

This summer, all ODSP clients who are unable to open or maintain a bank account will receive the card, except those who have limited access to an RBC bank machine. If successful, the card will be offered to all municipalities for use with Ontario Works, a government official said.

It will cost about $3.1 million to implement the card. But it will ultimately save up to $1.7 million annually when the government no longer has to issue paper cheques.

Jennefer Laidley of the Income Security Advocacy Centre, a legal-aid clinic that serves people on social assistance, welcomed the move.

“People on ODSP still receiving cheques are some of the most marginal people on social assistance, those with mental health challenges and living in shelters,” she said in an interview. “This could be a great benefit to them.”

The reloadable payment card will allow people on ODSP to avoid paying fees to cheque cashing services, said Pedro Barata at United Way Toronto.

“The test phase will be critical in identifying and addressing potential barriers such as avoiding fees and determining what additional financial literacy supports and tools are required,” he added.

Police chiefs also applaud the move.

“Reducing ODSP clients’ reliance on cash lowers their risk of being targeted by predators,” said Ron Bain, executive director of the Ontario Association of Chiefs of Police.

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Welfare by the numbers

900,000 People on social assistance in Ontario

465,000 People on the Ontario Disability Support Program (ODSP)

446,000 Individuals on Ontario Works (OW)

46,000: People on ODSP, including 13,000 in Toronto, who still receive paper cheques

86%: Percentage of people on ODSP who receive money through direct bank deposit

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